Leasing at Keith Pierson Toyota

You've found a car you absolutely love. Now it's time to consider dollars and cents. You can purchase the car outright, of course, through a traditional lender-sponsored auto loan. But have you considered whether leasing the car might be the best option?

When you lease a car, you are essentially "borrowing" it from the manufacturer and dealer for a monthly lease payment. The process of calculating the monthly payment is different, as is some of the terminology, but just about everything else is the same as it would be under a traditional loan. Here's a short primer on what you need to know about auto leasing.

The Basics of Auto Leasing

Think of leasing as a long-term car rental. But rather than keeping a car for a couple of days before giving it back, you drive it for two, three, or sometimes four years. You make regular monthly payments as you would in connection with a purchase, and you also pay to insure the car as you would normally. After the lease period expires, you either have to give the car back or purchase it.

Leases come with restrictions. For example, your lease deal will limit the number of miles you can drive each year. Typically, that figure is 10,000 or 12,000 miles, which calculates to 30,000 to 36,000 miles over the course of a three-year lease. If you exceed those limits, you will have to pay an additional fee per mile for every mile over the limit. The fee is usually 10 cents, 15 cents, or 25 cents per mile. Exceeding the mileage limits may also trigger charges for excess wear and tear. 

Lower Monthly Payments

Even with the risk of over-mileage fees, leasing can often save drivers a ton of money. With a lease, you are paying only for a portion of the value of the vehicle, rather than the entire cost. That often means your monthly payment will be lower, and sometimes by a significant amount. According to Experian Information Solutions, which reports on the auto finance market, monthly lease payments are on average about $113 less than a traditional loan, which is equal to more than $1,300 a year.

Another potential benefit in a lease transaction is that you usually will not have to make a large down payment. In fact, if your credit score permits it, you may even qualify for a lease that requires no down payment. These are the widely advertised "sign and drive" leases.

Save on Maintenance Costs

Another built-in advantage with auto leasing comes in the care of your car. You often will spend less on upkeep. Leases result in you driving a new or almost new car, with very few miles on it. You have the car when it is likely to have the least problems. And your car probably will be subject to the manufacturer's warranty.

Also, as an incentive, many auto leases include free oil changes and other routine maintenance measures for a limited period. At Keith Pierson Toyota, the Toyota Care maintenance plan covers any newly purchased or leased vehicle for two years or 25,000 miles, covering normal factory scheduled maintenance such as oil changes, tire rotations, fluid replenishment, and other routine repairs. 

New Cars on Schedule

You might be someone who likes variety in the cars you drive. If so, auto leasing may be an excellent choice for you. Because the terms of auto leases are typically either two or three years, that means you can, if you wish, "trade-up" to a new car at the end of every lease. Of course, you are not required to do so! If you like your car a lot, you will be able to purchase it at lease-end.

What Happens When My Lease Expires?

As your lease term winds down, you will have a decision to make about what to do next. The team at Keith Pierson Toyota will be in touch to explain the various options, but the three choices are:

• Buy the car. You can take out a loan to pay for what's known as the "residual value" of the car. If you really like your car, then why not keep it?
• Turn the car in and lease something else. You might be interested in trying out a different model of Toyota or the same but newer model than the one you were driving.
• Turn the car in and walk away. It's our least favorite option, but the team at Keith Pierson will do everything it can to find you an option that keeps you in our family.

One thing to expect at lease end is an inspection. Understandably, Toyota wants to check the car for any dings, dents, damage, or other problems before you turn it in. You may be charged for that damage, or if you've put extra miles on your vehicle, you may also face a fee for "excess" wear and tear. Everything will be fully documented and transparent to you, however. 

Downside of Leasing

The limitation on mileage on lease deals probably represents the biggest downside of leasing. If you are someone who drives a lot for business, or who goes on frequent family road trips, a lease might not be a good fit. Remember that you will pay per mile at the end of the lease if you exceed mileage limits.

Lease Your Next Car from Keith Pierson Toyota

Serving drivers in Jacksonville, Florida, and surrounding areas, the team at Keith Pierson Toyota is ready to help you find a lease deal that works for your budget and provides the transportation you need. Our sales and finance department will listen closely to your needs and provide the best options.

Keith Pierson is a full-service dealership. If leasing is not right for you, our team can help you find a new or used vehicle to your liking at the right price. And in all instances, we stand ready with our service department to provide the maintenance expertise to keep your car on the road as long as possible. Call us at 888-461-3879 today or contact us online for an appointment.